Friday Morning, December 7th

   SITE NEWS

New IceMD Recording

Low testosterone in men linked to earlier death;

   Dow Stock News

AXP - downgraded to Sell at Merrill. They had negative comments and downgrades on others including COF.
AXP American Express Morgan Stanley Downgraded to Sell
AXP American Express Stifel Nicolaus Downgraded from Buy to Hold

   Ice Man Stocks

Breakouts the Ice Man may consider trading:

UBB - 160
MTD - 119.25
MCD - 60
IVGN - 99
BMRN - 29

Regular Trades the Ice Man may consider:

MFLX - 19
MSO - 10.45
USMO - 13.85
AVCT - 25.65
INFY - 43.85
MCO - 40.15
BHI - 84.40
SLW - 16
PDCO - 33
CMGI - 13.90
OMRI - 39
CMI - 128 = 133 Gap
IBM - 110 B = 111 Gap

Extended Shorts:

LIFC - 49
FCSX - 49/50

Dollar Man Ideas:

PRS - 6.50
TSYS - 3.43
MNTA - 6.25
LVLT - 3.55
NSTK - 4.25
TRID - 6.80
ASYT - 3.70
GW - 5.26
IXYS - 8.50
SUPG - 4.50

   Media Commentators

Cramer's Comments:

Bullish: SGR, AUY, ABX, XTO, APA, APC, COP;
Bearish: BTU, ACI, MEE, ICO;

   Ice Cold Commentators

Break Man Video Summary:

Break out buy (or short sell) watch list for short term gains December 7 includes: MNKD, NLS, MKTR, PTT, SWKS, OSIS, AMND, FLOW.

Several candidates for break out or short sell  plays for at least short term gains by buying the break out (or selling the break down) on good volume and closing at least some on the  first day.

Swing Man Market Recap:

The market opened slightly lower Thursday morning, but quickly hit its lows for the day at 1482 on the SPX.  Subsequently, the market rallied back up until 1:00 when the SPX hit 1494, which marked a new high for this recent rally.  After approximately an hour of consolidation, the market proceeded to rally right into the close.  For the day the SPX/DOW added 1.40% while the NDX/NAZ gained 1.45%.  Bonds lost over 1 point, crude oil rallied higher by $2.95, and Gold bullion gained over $6.00 on the session.  With today´s close at 1507, look for some support at the 1506 pivot and followed by 1490 and 1484 with pivot resistance at 1530. Most of the major indices closed near their respective 50 day MA´s which also could be a player in terms of resistance.  Short term momentum is getting overbought while market internals continue to show improvement.  Remember, Friday morning the government will release the monthly jobs report which could be market moving.

As expected Thursday afternoon, the government announced that it had brokered a deal with bankers to place a five year moratorium on the scheduled rate increases for select adjustable rate mortgages.  This should help to resolve part of the housing debacle which will certainly need additional assistance in the coming months.  The onus now shifts to the Federal Reserve which meets next week.  Truthfully, I don´t know what to make of this housing bailout – I prefer to see government refrain from such intervention but in this case some type of intervention may be appropriate because of its impact on the overall economy.  Let´s just leave it at that for now.

Quite frankly, I was surprised at how the market quietly broke out above our key resistance levels of 1490 SPX and 2700 Nasdaq.  For most of Thursday´s session the SPX stayed in close proximity to the 1490 level, but gradually worked its way higher into the late afternoon and before you knew it the index had made the breakout.  The Nasdaq also broke out over its neckline at 2700 during the final hour.  Although volume on the move was somewhat lighter, the market internals were outstanding across the board.  When you see advancers outnumber decliners 26/7 on the NYSE and 21/8 on the NAZ you can accept slightly lower volume on the break.  Should the market elect to pullback, look for the 1490 level on the SPX to now act as support.  The bottom line is that the market accomplished the breakout above SPX 1490 and NAZ 2700.  As stated Wed night, the pattern measurement on the SPX inverse head and shoulders formation would imply a target of 1460-1470 on the SPX over time.  Remember, this is an objective target based upon the pattern – nothing is guaranteed but this is the measured target with many pullbacks along the way.

Finally, I have included many relevant charts below for you to review.  Please be aware that many of the major indexes closed at resistance Thursday – also the unemployment report comes out pre-market and will likely have an impact on early trading.

Good Trading.

   CNBC Fast Money Review

1. THE GOVERNMENT LENDS A HAND

The headline: Stocks Gain Steam After Administration Unveils Mortgage Plan Thursday Afternoon to Freeze Certain Rates, Help Some Homeowners Refinance

Pete Najarian said financials, led by the battered down mortgage lenders and insurers, saw a strong bounce on the government plan. CFC jumped 15%, MTG rose 12% and GS and MS both shook off downgrades to end the day higher. But the rally went even deeper, stretching across the agriculture complex, the metals, energy, tech and others. “Everybody seemed to be working." The question is if it can continue.

Jeff Macke says indeed, past resistance is now support. He and Guy Adami believe, with the S&P 500 breaking the crucial level of 1490, that the broader market will go higher as long as the S&P stays above that number. Especially compelling are big-cap names like MSFT or INTC, Guy and Jeff said, respectively.

Tim Seymour said the most important signifier of this rally is that it appears that volatility has been siphoned out of the market – at least for a while. That, of course, is great news for riskier assets.

2. NOVEMBER PAIN

The headline: TGT, Retailers Tumble as November Same-Store Sales Disappoint

Jeff Macke wished he were long retail going into Thursday. If only for a trade, he thinks certain parts of the retail sector will hold up for the remainder of the year. The best move is to buy “excellence’ in best-of-breed stocks like COST or weak names like GPS where expectations are about as low as they can go.

Pete Najarian concurred with the idea of bottom picking in the retailers for a trade. He would buy TGT.
Adami recommends MA. Consumers may be spending less, but they´re putting what they do spend on their credit cards. That bodes well for MA, Guy said.

3. RATE-CUT BUG STRIKES OVERSEAS

The headline: Bank of England Cuts Rate by Quarter-Point, its First Reduction in 2 Years

Tim Seymour says there is tremendous pressure across Europe to cut rates as European countries deal with similar credit contractions as the U.S. The difference is, inflation is soaring in Europe.

Guy Adami sees gold continuing to melt down. Lower gold prices and a rate-cutting Europe could take the pressure off the U.S. dollar for a while, he said.

4. MORE APPLE INNOVATION

The headline: AAPL Shares Gain after a CNBC report on the New 3G Phone, Ultra-Portable Laptop

Pete Najarian said price targets for Apple continue to get raised, even as it eyes a new 52-week high. The options calls are higher, too. This is a name he would sell into strength.

5. SEMI GOOD DAY

The headline: RMBS, MU, INTC, Chip Stocks Post Strong Gains for Second Day

NSM, however, fell after hours Thursday after its net income slipped, perhaps indicative that the strength in semis isn´t here to stay.

Jeff Macke would buy one, and only one semi: Intel.

Guy Adami agreed, saying he sees Intel going to $30 or higher.

For owners of RMBS, Pete Najarian urged selling. The stock is working since the S.E.C. terminated an options backdating investigation, but the competition is still too great for this stock to work, he said.

6. POPS AND DROPS

MOT popped 4%: Adami said it´s a lottery ticket, but could be worth a look.
FLS popped 7%: Adami said take some profits.
RMBS popped 7%: Najarian said sell this pop.
KKD popped 27%: The donut chain said it had narrowed its quarterly loss down to $800,000 from $7.2 million a year ago.
TOL popped 13%. The nation's largest builder of luxury homes rose on the President's mortgage plan - even as it posted its first quarterly loss in 21 years.
FDO dropped 8%: Jeff Macke said, “Walk away.’
ZUMZ dropped 14%: Jeff Macke said, “I told you a month ago to get out.’

7. YOUR FIRST MOVE FOR FRIDAY

Jeff Macke recommended buying SPY with a tight stop. If the S&P rolls down to 1495, get out.
Guy Adami liked INTC.
Tim Seymour preferred SWC.
Pete Najarian said AAPL is a buy.

   News and Events Digest

Breaking News

Brazil's state oil company Petrobras (PBR) said on Thursday it struck natural gas and light oil in two wells in the offshore Espirito Santo basin. - Reuters

Temple-Inland Inc. (TIN) announced today that its Board of Directors declared a special cash dividend of $10.25 per common share, payable on December 21, 2007 to Temple-Inland stockholders of record as of the close of business on December 12, 2007. As previously announced, the special dividend represents a portion of the proceeds from the Company’s non-recourse loan secured by the installment notes received from the sale of its strategic timberlands. The special cash dividend is in addition to the previously announced regular quarterly dividend of $0.28 per common share payable December 14, 2007, to stockholders of record as of the close of business on November 30, 2007.

Visiting shareholders in the U.S. Thursday, Rio Tinto PLC (RTP) Chief Executive Tom Albanese stepped up his rhetoric against BHP Billion´s (BHP) massive unsolicited takeover bid, labeling it "dead in the water." - MarketWatch

Comverge (COMV) said it's pricing its follow-on offering of 4 million shares at $29 each. The offering includes 800,000 shares offered by Comverge and 3.2 million shares offered by certain selling stockholders. Comverge closed Thursday at $29.17. - MarketWatch

M&A Activity:

Macro vision (MVSN) said it's paying $2.8 billion in cash and stock to buy Gemstar-TV Guide International (GMST), so the combined firm will be able to offer extensive libraries of commercial and personal protected content to be accessible on numerous devices. It's paying $6.35 a share in cash or 0.2548 shares for each Gemstar share, a 29% premium to the 10-day average closing price of Gemstar. Macrovision will hold 53% of the combined firm. Macrovision's Fred Amoroso and James Budge will hold the CEO and CFO roles at the combined firm. - MarketWatch

IPO Central:

Billionaire Ron Perelman on Friday filed to raise up to $750 million in a blank check initial public offering for a new entity called MAFS Acquisition Corp. Perelman is chairman of MAFS, which plans to acquire a company within 24 months MAFS will offer 50 million units at $10 each, each consisting of one share of common stock and one warrant. Each warrant entitles the holder to purchase one share of its common stock at a price of $7.50. Perelman owns cosmetics giant Revlon and does business through his firm, MacAndrews & Forbes Holdings Inc. Citi is serving as the banker on the deal. - MarketWatch

Triple-S Management Corp. (GTS) priced 14 million shares at $14.50 a share, raising $203 million in its initial public offering on Friday. Triple-S Management is an independent licensee of the Blue Cross Blue Shield Association. It is the largest managed care company in Puerto Rico, serving approximately one million members across all regions. Triple-S priced its IPO below its $16-$18 range. - MarketWatch

Entropic Communications Inc. (ENTR) on Friday said it priced 8 million shares at $6 a share in a bid to raise $48 million. The San Diego-based chip maker for home entertainment devices priced at the bottom of its $6-$8 price range. Entropic cut the deal terms from 10 million shares at an estimated price of $9-$11 a share. For the nine months ended Sept. 30, Entropic reported an adjusted loss of $14.5 million on revenue of $97.4 million. - MarketWatch

Economic Data:

8:30 Nonfarm Payrolls
8:30 Unemployment Rate
8:30 Hourly Earnings
8:30 Average Workweek
10:00 Mich Sentiment-Prel.
3:00 Consumer Credit

   Upgrades and Downgrades by Sector:

Beverages
 HANS Hansen Natural UBS Initiated at Buy $58

Biotech
 LJPC La Jolla Pharm Susquehanna Financial Initiated at Positive

Business Services
 CVG Convergys Friedman Billings Cut Price Target Mkt Perform $22 to $20

Computer Hardware
 JBL Jabil Circuit Robert W. Baird Upgraded from Neutral to Outperform $24

Computer Software
 ATVI Activision Piper Jaffray Upgraded from Neutral to Buy
 KNXA Kenexa Brean Murray Upgraded from Hold to Buy $28
 SNPS Synopsys Deutsche Securities Upgraded from Hold to Buy
 INFA Informatica Broadpoint Capital Price Target Raised Buy $18 to $19.50
 SCUR Secure Computing Roth Capital Price Target Raised Buy $11 to $13
 MFE McAfee Friedman Billings Downgraded from Outperform to Mkt Perform $43
 NAPS Napster Kaufman Bros Downgraded from Buy to Hold $6 to $3

Entertainment
 CNK Cinemark Wedbush Morgan Cut Price Target Buy $22 to $21

Finance Companies
 DFT Dupont Fabros Tech UBS Initiated at Buy $24
 SLM SLM Corp Friedman Billings Cut Price Target Outperform $57 to $50

Health-Beauty Prod
 USNA USANA Jefferies & Co Initiated at Buy $56

Healthcare
 EXEL Exelixis Fortis Bank Cut Price Target Hold $10 to $9
 MOGN MGI Pharma Susquehanna Financial Initiated at Negative
 SUPG SuperGen Susquehanna Financial Initiated at Negative

Healthcare Equipment
 ALGN Align Tech Jefferies & Co Upgraded from Underperform to Hold
 ARTC ArthroCare Oppenheimer Initiated at Buy $70

Healthcare Facilities
 HR Healthcare Realty Keefe Bruyette Initiated at Outperform $28
 MPW Medical Properties Trust Keefe Bruyette Initiated at Outperform $14

Homebuilders
 LEN Lennar Deutsche Securities Downgraded from Buy to Hold $36 to $17

Hotels and Motels
 LGND Ligand Pharma Susquehanna Financial Initiated at Positive

Insurance
 HLEX HealthExtras Credit Suisse Initiated at Outperform $32
 ZNT Zenith National Insurance Friedman Billings Cut Price Target Outperform $56 to $54

Major Pharmaceutical
 HLF Herbalife Jefferies & Co Initiated at Buy $62

Manufacturing
 HXL Hexcel Stifel Nicolaus Price Target Raised Buy $26 to $30

Mfg - Industrial Goods
 TRS Trimas JP Morgan Initiated at Underweight

Mfg - Steel Products
 PLTE Claymont Steel CIBC Wrld Mkts Downgraded from Sector Outperform to Sector Perform $22.50 to $24

Mfg-Sporting Goods
 SWHC Smith and Wesson THNK Downgraded to Source of Funds
 SWHC Smith & Wesson Cowen & Co Downgraded from Outperform to Neutral
 SWHC Smith & Wesson Rodman & Renshaw Downgraded from Mkt Perform to Mkt Underperform $4.50
 SWHC Smith & Wesson Northland Securities Cut Price Target Outperform $18 to $12

Motion Pictures
 RGC Regal Entertainment Wedbush Morgan Cut Price Target Buy $24 to $22

Personal Services
 CTAS Cintas Robert W. Baird Upgraded from Neutral to Outperform $42

Pharmaceutical
 VRUS Pharmasset Susquehanna Financial Initiated at Positive

REITs
 NHP Nationwide Health Keefe Bruyette Initiated at Outperform $35

Retail Trade
 AAP Advance Auto JP Morgan Upgraded from Neutral to Overweight
 AZO AutoZone JP Morgan Upgraded from Underweight to Neutral
 JCP JC Penney Lehman Brothers Upgraded from Equal-weight to Overweight
 GME Gamestop Broadpoint Capital Price Target Raised Strong Buy $60 to $73
 AAP Advance Auto Banc of America Sec Initiated at Buy $44
 TGT Target Banc of America Sec Downgraded from Buy to Neutral
 DFS Merrill Lynch Downgraded
 GMTN Gander Mountain Friedman Billings Cut Price Target Mkt Perform $10 to $6.50
 ZUMZ Zumiez McAdams,Wright,Ragen Cut Price Target Buy $37 to $29

Semiconductors

 Smith Barney upgraded global semiconductors, Samsung to Buy from Hold and HYNIX to Hold from Sell.
 They Believe the memory cycle will bottom in the first quarter of 08 and recover.
 They also maintain Buy ratings on MU, QI and SNDK.

 NSM National Semi JMP Securities Upgraded from Mkt Perform to Mkt Outperform
 YGE Yingli Green Energy Banc of America Sec Upgraded from Neutral to Buy
 FEIC FEI Company Broadpoint Capital Initiated at Buy
 DIOD Diodes Morgan Keegan Downgraded from Outperform to Mkt Perform
 ISIL Intersil Morgan Keegan Downgraded from Outperform to Mkt Perform

Solar Energy
 SPWR Sunpower Jefferies & Co Upgraded from Hold to Buy $105 to $170

Utilities
 SGR Shaw Group Stifel Nicolaus Price Target Raised Buy $79 to $90
 EAS Energy East Jefferies & Co Downgraded from Hold to Underperform $27.50 to $22